Target: ₹1,975

CMP: ₹1,694.55

SBI Life Insurance’s new business APE for Q4-FY25 de-grew/grew -21.5/2.3 per cent q-o-q/y-o-y. Total APE for FY25 was up by 9 per cent y-o-y to ₹21,420 crore where Individual APE was up by 12 per cent to ₹19,590 crore.

Going forward, the management has guided that on individual APE basis it will grow by 13-14 per cent, which is slightly ahead of the expected growth for the total industry at 12 per cent. The SBI branch productivity on individual APE terms was ₹54 lakh, up 9 per cent y-o-y. The banca channel, which grew 8 per cent for the year FY25, is expected to grow at 10 per cent or at low double digits for FY26.

The agent productivity was at ₹2.9 lakh on individual NBP for FY25, up 20 per cent y-o-y. The management has guided that there will be continued focus on the agency channel and it is expected to grow at 25 per cent. While the company will be working on increasing share of non-par guaranteed, protection and annuities, the share of low-margin Par is also expected to go up. The VNB margin for FY26 is expected to be maintained at 28 per cent.

We value SBIL at 2.0x FY27 P/EV for an FY26/27E RoEV profile of 18.6/18.5 per cent.

Published on April 25, 2025